Siemens Energy India's Strong Stock Market Debut and Growth Prospects
Key Ideas
- Siemens Energy India's stock debuted on stock exchanges with a significant increase from its demerger price, indicating investor confidence.
- Analysts project a promising future for Siemens Energy India, with expected annual EPS growth of 40% from FY24 to FY27 driven by various factors.
- The company is positioned to benefit from India's increasing power transmission capital expenditure, set to exceed $100 billion, enhancing its growth potential.
- Financial institutions like Jefferies and HDFC Securities have a positive outlook, with price targets and 'buy' ratings attributing value to Siemens Energy India.
Siemens Energy India, after separating from Siemens, made a strong entry into the stock market on June 19, 2025. The stock opened at Rs 2,840 on the NSE, surpassing its demerger price of Rs 2,350, and quickly reached the upper circuit at Rs 2,982. On the BSE, it opened at Rs 2,850 and also hit the upper circuit at Rs 2,992. Meanwhile, its parent company, Siemens, was trading slightly lower at Rs 3,310. Analysts from Jefferies have high expectations for Siemens Energy India, foreseeing it to become the country's largest listed company focused on power transmission and distribution equipment. They anticipate the company's EPS to grow at an impressive rate of 40% annually from FY24 to FY27, bolstered by a robust order pipeline, improved manufacturing capacity utilization, and enhanced operational efficiency. Global peers like Hitachi Energy and GE Vernova trading at higher PE ratios underline the growth potential of Siemens Energy India. The company is well-positioned to benefit from India's significant power transmission capital expenditure, which is projected to exceed $100 billion. HDFC Securities also expressed confidence in Siemens Energy India, emphasizing its diverse product range covering decarbonization, power generation, grid automation, energy solutions such as green hydrogen, and battery storage. With a 'buy' rating and a price target of Rs 3,000, HDFC Securities highlights the value proposition offered by Siemens Energy India in comparison to its competitors.